Salary, allowance and pension of MPs and ex-MPs to increase

IN good news for members of Parliament and former MPs, the Central government has notified an increase in their salaries.

The government has also increased allowance, pension and additional pension, which will be effective from April 1, 2023.

“In exercise of the powers conferred by sub-section (2) of section 3 and sub-section (1A) of section 8A of the Salary, Allowances and Pension of Members of Parliament Act, 1954 (30 of 1954), the Central Government hereby notifies the increase in the salary, daily allowance, pension and additional pension of Members and Ex-Members of Parliament on the basis of Cost Inflation Index specified under clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), with effect from the 1st April, 2023,” reads the notification.

Hike in salary of MPs

— According to the notification, issued by the Ministry of Parliamentary Affairs, the monthly salary has been increased from 1 lakh to ₹1.24 lakh, which is a hike of 24 per cent.

— The daily allowance has been raised from ₹2,000 to ₹2,500.

— The monthly pension has been revised from ₹25,000 to ₹31,000.

— Additional pension for every year service over five years has been increased from ₹2000 to ₹2,500.

In addition to this, MPs also get an allowance annually for phone and internet usage.

The development comes just days after the Karnataka Assembly passed bills approving a 100 per cent salary hike for the Chief Minister, Ministers, and all legislators.

The salary hike for Karnataka MLAs will cost the exchequer ₹62 crore annually.

As per the Karnataka Ministers' Salaries and Allowances (Amendment) Bill, the Chief Minister's monthly salary will double from ₹75,000 to ₹1.5 lakh, while ministers' salaries will increase by 108 per cent from ₹60,000 to ₹1.25 lakh.

The Karnataka Legislature Salaries, Pensions and Allowances (Amendment) Bill, 2025, raises the monthly salaries of MLAs and MLCs from ₹40,000 to ₹80,000, while their pensions will increase from ₹50,000 to ₹75,000.

The monthly salary of the Assembly Speaker and Legislative Council Chairperson will also be revised from ₹75,000 to ₹1.25 lakh.

"There has been a considerable increase in the cost of living. The salaries and allowances of the CM, ministers, ministers of state, and deputy ministers have not been revised for a long time," the Minister's Salaries and Allowance (Amendment) Bill stated, adding that the proposed measure will lead to an additional recurring expenditure of approximately ₹10 crore per year.